The model added exposure to US Equities with low VaR requirements given the large spike on the Economic Policy Uncertainty Index.
I will be monitoring the prices and add or remove exposure as price action develops.
Here you can view the link to the FRED Site
https://fred.stlouisfed.org/series/USEPUINDXD#0
Here you have the link for Twitter and some key comments of WSJ.com
In a move that eased market concerns, Beijing refrained from announcing countermeasures to the Trump administration’s designation of China as a currency manipulator late Monday, in response to a sharp depreciation in the yuan. Meanwhile, the trade war has left swaths of America’s Farm Belt in pain, prompting the administration to disperse billions to farmers to help tide them over.
“The best retaliation is letting U.S. tariffs on China hurt the U.S.’s own economy,” said Yu Yongding, an economist and adviser to Chinese policy makers.
The worsening in the two countries’ more than year-old trade conflict in recent days means the U.S. has now imposed or is poised to impose punitive tariffs on nearly all the goods it imports from China, as part of the administration’s bid to force Beijing to change rules and a subsidy-heavy economic model seen as unfair to foreign businesses. In its latest countermoves this week, China suspended purchases of U.S. agricultural products and weakened the Chinese currency to make its exports more competitive.
———————————————–** ———————————————–
A key point to carry forward is that as of yesterday close, the Hang Seng China Enterprices turn negative YTD which is adding pressure to the political situation in the region
